Fiscal actions shouldn't undercut macroeconomic stability: RBI MPC

Interview with Urjit Patel and other top officials

After the Reserve Bank of India’s (RBI’s) fourth bi-monthly policy review for FY18, Governor Urjit Patel and other top officials spoke to the media on the central bank’s decision to hold the repo rate, increase inflation projection, and reduce its growth forecast. Edited excerpts:

There is some discussion about a fiscal stimulus package from the government. What’s the RBI’s take on this?

Urjit Patel: Given that the general government fiscal deficit — in other words of the states’ and the Centre’s combined — is already in the region of 6 per cent of the GDP, our national fiscal stance can